I was reading in Advertising Age Cartier, a brand better known for diamond necklaces and $10,000 watches, will advertise its latest collection, Love by Cartier on MySpace,

Now this is not the first time that a luxury brand has hooked up with a social network. Last year I blogged about how Neiman Marcus had picked YouTube as a place to publicize its 100-year anniversary.

What surprised me where comments by Travis Katz, managing director-international operations for MySpace.

Travis was talking abut MySpace demographics and he claimed that:

“There’s this misperception in the market about MySpace being a youth site, a site for teens. But 85% of our audience in the U.S. is over 18, and 40% of all moms in U.S. are on MySpace.”  He claims that MySpace reaches more people making $100,000-plus than other social-network competitors, such as Facebook and Yahoo 360.

Now I am sure that Travis Katz has access to much better demographic data that I do but  a couple of his claims I find are hard to believe. Are 40% of ALL moms in the U.S. really on MySpace? Do an informal poll of your female co-workers and ask them whether they use MySpace. My guess is that it is a less less than 40%. In  the past MySpace has had a problem with bots creating tens of thousands of users profiles which makes me wonder how many of this 40% are active users?

I have some skepticism about the second claim that MySpace reaches more people making $100,000-plus than other social-network competitors, such as Facebook and Yahoo 360. I see a lot of businesses actively working on using Facebook because of the demographics. Other than Cartier can you name another luxury brand that is targeting MySpace users? You would think that with users with that kid of earning power that the Financial companies, luxury auto manufactures and Jewelers would be all over MySpace. That they are not makes me really skeptical of Travis Katz claims.

What do you think? Is MySpace the destination of choice for soccer moms and the rich?

It has been a bad week for Rupert Murdoch and MySpace. Last week we wrote about how Facebook has passed MySpace in total visitors for the first time and now Compete  releases data that shows MySpace is rapidly losing market share to Google and Yahoo.

MySpace has traditionally made money because of its heavy focus on entertainment (nee video), so the alarm bells must be going off at News Corp. that MySpace has seen its online video market share fall from 8.9% to 5.1% in one year. That is a 42% drop which is huge.

The only other company that has seen a similar drop is ManiaTV.com which saw its market share plummet by 64%.

For biggest battle online is being contested by ABC and NBC through their proxy sites Veoh.com (ABC) an Hulu (NBC). In May, Disney-owned ABC made its first public move to embrace online distribution by signing up with Veoh.com.
The move is a defensive play against Hulu, the NBCU-News Corp joint venture and ABC has previously announced plans to release an embed-friendly player this fall, though not ruled out working with Hulu.

While Veoh.com shows up much higher in Compete’s ranking of on-site video viewing visits, Hulu.com actually plays host to ABC visitors slightly more often (4.7% vs. 4% in May).

For the first time it looks like Facebook has overtaken MySpace as the biggest social network, at least according to ComScore. An article in the Financial Times said that:

Facebook attracted more than 123m unique visitors worldwide in May, an increase of 162 per cent over the same period last year according to ComScore, a company that monitors websites. That compared with 114.6m unique visitors worldwide at MySpace, Facebook’s leading rival, whose traffic grew just 5 per cent during the same period, ComScore said.

The findings mark the first time that Facebook, launched in 2004, has taken a significant lead in unique visitors, after ComScore’s April traffic figures showed the rivals in a virtual tie. They come at a time of change inside Facebook, as the one-time upstart attempts to transform itself into a leading media company. Several members of the original executive team have left the company in recent weeks.

MySpace is still significantly more popular than Facebook among US residents and, with $1 billion in revenue last year, is probably more profitable. Facebook is a private company and doesn’t disclose sales figures but the Financial Times reported it made $150 million worth of sales last year.

MySpace seems to be in a major period of transition. Their web site traffic seems to be peaking and advertising revenue is not at the levels that Fox expected. When people talk about advertising on social networks, they talk about Facebook apps, not advertising on MySpace.

MySpace last week launched a redesigned home page with simpler navigation and less noise after users complained it was difficult to use and featured garish, cluttered profile pages

“We asked people why they didn’t go to MySpace,” MySpace co-founder Tom Anderson told The Guardian. “A lot of people thought it was too hard to use, they thought it was a music site, or a content site. Privacy was a concern, or they’d say it was a site for teenagers.”

Rupert Murdoch the outspoken chief executive of News Corp, which bought MySpace for the now bargain price of $580 million in 2005, said Facebook had “done a great job of being flavor of the month the last six months of last year” but it was not a real social network and was basically a “directory”.

Hitwise recently reported that MySpace.com received 74% of U.S Social Networking visits for April 2008, down from 78% in April 2007. Facebook on the other hand saw its market share rise from 11% in April 2007 to almost 15% in 2008 (a 32% gain).

Without looking, can you name the top five social networking sites in the U.S. by market share? Myyearbook.com really surprised me as it does not get much mainstream media attention, but it has quietly taking the third spot in the U.S. from Bebo.

‘Social networking websites continue to attract loyal visitors who return regularly to communicate with their friends, particularly for MySpace and Facebook, the market leaders’ said Heather Dougherty, research director at Hitwise. ‘The growing number of applications and amount of content available for social networks are driving higher average visit times for the category, providing marketers with additional opportunities to reach these active users.’

Market Share of U.S. Traffic from New and Returning Visitors for April 2008 – Ranked by Returning Visitors

Note – a returning visitor is defined as a user that has visited the site in the past 30 days from the Hitwise sample of 10 million U.S. Internet users.

In April 2008, MySpace received 95 percent of its visits from returning visitors. Among the top five social networking websites by market share, Facebook and MyYearbook.com followed with 93 and 90 percent, respectively, of traffic returning from within the previous 30 days.

These numbers are interesting as they indicate that MySpace and Facebook might have peaked in terms of visitors ad they are attracting fewer and fewer new users. This is something that will worry investors as it means that these sites will have a harder time selling advertising space. The Bebo.com numbers are inflated I believe because of its purchase of AOL and the introduction of the site to the AOL user base.

Earlier this week I looked at the demographics of blog readers which showed that the younger the user, the more likely he or she was to read or keep a blog on a weekly basis.

I focus so much on demographic data because it is important to understand who is using social networking sites before you start advertising on them. Recently I looked at some new social network user demographics which indicated that the Facebook demographic skews female and under 25, compared to other major social networks. That is important information to know if you are building a Facebook application.

One of the fastest growing U.S. demographics are baby boomers, who have the discretionary income that advertisers love. But do baby boomers use social networks? Not according to a new study from JWT BOOM/ThirdAge “Boomers, Healthcare and Interactive Media” study conducted last month. They believe that less than one-quarter of US Internet users ages 40 and over use social networking Web sites.

The JWT BOOM/Third Age figures on social networking usage by those 40 and older generally agree with a study by ExactTarget conducted last month.

Instead of using one large category of older Internet users, ExactTarget divided users who were ages 35 and older into 10-year increments, with 65 and over being the oldest cohort. Although 39% of 35 to 44 year-olds used social networks, use fell sharply with age: Only 13% of 55 to 64 year-olds were social networkers, and only 4% of those ages 65 and older. In comparison, three-quarters of Internet users ages 15 to 24 use social networking sites.

Why don’t consumers 40 and older use MySpace and similar sites in greater numbers? Respondents said their main concerns were privacy, time and just not seeing the point. Although each of these barriers can be addressed, marketers might also consider that social networks are just not yet the best way to reach boomers.

It is always interesting to hear the objectives as to why people will not use something. As people age, I can understand why they would not find a site like MySpace or Facebook useful because it is aimed at a younger demographic. The opportunity I believe for marketers is through smaller niche social sites like cater directly to the boomers generation. For example the AARP has added a social networking section to its web site. This type of site would alleviate the boomers concerns with privacy and lack of information.

From a marketing perspective, advertisers who are looking to reach baby boomers would be better suited finding smaller niche sites like AARP rather than MySpace or Facebook.

emarketer has a huge post on social networks. As I was reading through the report I was struck by the type of advertising that influences a purchase data and how many ad agencies are focused on the wrong medium!

When marketers look at what ad placements most influence consumers to make an online purchase, for example, only 1% of respondents in a DoubleClick Performics study cited ads within social network sites.

However, while social networks such as MySpace and Facebook get the majority of the media attention, they can also be seen as prime examples of what might better be termed the “social Internet.” Customer reviews on company Web sites, which influenced 10% to 18% of Performics’ respondents (depending on age), are another example of the social Internet.

Some numbers jump out of this chart. One is that customer reviews on company web sites have a greater influence on the buying decision than any other form of advertising. While social elements like customer reviews are now common across the Internet, there are a lot of companies who are reluctant to put reviews on their site in case they are negative. The data shows that these companies are missing out on sales.

The second interesting point is that ads within social networks do not influence buying decisions. This is not new to anyone who has advertised on MySpace or Facebook. I think that this type of data shows that traditionally banner ads on social networks do not grab users attention, because they are not looking to buy something when they are on these types of sites. Instead advertisers should look for way that they can engage and converse with social network users instead of just hitting them over the head with ads.

I came across a fascinating report on the demographics of social network users. Rapleaf ooked at user profiles and demographcs for the major social networking sites (MySpace, LinkedIn, Friendster, Plaxo, and Hi5 ) as well as for Facebook. The data is fascinating.

Summary Numbers

• The greatest overlap between OpenSocial container sites exists between MySpace and Hi5, in which 43% of Hi5 users also use MySpace.
• Facebook users are 63% female and 36% male whereas the sites integrated with the OpenSocial platform are 61% female and 38% male
• 52% of Facebook users are 18-25, whereas 40% of the users are 18-25 for the five container sites on the OpenSocial platform
• Facebook users tend to use 2.9 major social networking sites on average whereas users of OpenSocial container sites tend to use 2.7 major social networking sites

Interesting that this data shows that Facebook demographic skews female and under 25, compared to other major social networks. That is important information to know if you are building a Facebook application.

Social Network Specific Data

Facebook Users

• 2.6 million users identified in Rapleaf
• 63% female, 36% male
• 17% <18 yrs, 52% 18-25 yrs, 21% 26-35 yrs, 5% 36-45 yrs, 5% >45 yrs
• 2.9 major social networking sites used on average
• 62% are on MySpace, 5% are on LinkedIn, 9% are on Friendster, 10% are on Plaxo, 22% are on Hi5

MySpace Users

• 11.3 million users identified in Rapleaf
• 63% female, 36% male
• 20% <18 yrs, 40% 18-25 yrs, 27% 26-35 yrs, 7% 36-45 yrs, 6% >45 yrs
• 2.4 major social networking sites used on average
• 15% are on Facebook, 2% are on LinkedIn, 9% are on Friendster, 6% are on Plaxo, 17% are on Hi5

LinkedIn Users

• 0.8 million users identified in Rapleaf
• 38% female, 61% male
• 2% <18 yrs, 9% 18-25 yrs, 49% 26-35 yrs, 24% 36-45 yrs, 16% >45 yrs
• 3.2 major social networking sites used on average
• 16% are on Facebook, 25% are on MySpace, 12% are on Friendster, 16% are on Plaxo, 8% are on Hi5

Friendster Users

• 2.3 million users identified in Rapleaf
• 58% female, 41% male
• 12% <18 yrs, 39% 18-25 yrs, 36% 26-35 yrs, 7% 36-45 yrs, 5% >45 yrs
• 3.0 major social networking sites used on average
• 10% are on Facebook, 44% are on MySpace, 5% are on LinkedIn, 5% are on Plaxo, 26% are on Hi5

Plaxo Users

• 1.3 million users identified in Rapleaf
• 62% female, 37% male
• 16% <18 yrs, 39% 18-25 yrs, 24% 26-35 yrs, 10% 36-45 yrs, 11% >45 yrs
• 3.6 major social networking sites used on average
• 20% are on Facebook, 53% are on MySpace, 11% are on LinkedIn, 9% are on Friendster, 15% are on Hi5

Hi5 Users

• 4.5 million users identified in Rapleaf
• 60% female, 39% male
• 21% <18 yrs, 44% 18-25 yrs, 23% 26-35 yrs, 6% 36-45 yrs, 6% >45 yrs
• 2.8 major social networking sites used on average
• 13% are on Facebook, 43% are on MySpace, 2% are on LinkedIn, 13% are on Friendster, 2% are on Plaxo

What I am amazed at is the number of people from the other social networks that use Hi5 (http://www.hi5.com). This is a social network that rarely gets any press, but for marketers it might be cheaper and easier to market on Hi5.com compared to Facebook or MySpace and still reach a lot of the same people.